Microcaps prove to be a winner as Gartmore’s Williams predicted

Gartmore Growth Opportunities plc (" GGO" ), an award winning Investment Trust managed by Gervais Williams, recently completed its year end to 30th June 2007.

The Net Asset Value per share increased 25.4% in the year compared with an increase of 17.5% from its benchmark, the FTSE Small Cap ex ICs. Over 5 years to the 30th June 2007 the NAV per share increased 139.6% compared with 67.6% for the benchmark.

Gervais believes that the area of the market that represents the most attractive investment opportunity has been the micro cap stocks, many of which are quoted on the AIM market. He anticipated that microcaps would recover as valuations were mispriced and were cheap relative to the rest of the market. As at 30th June 2007, the Company's portfolio had over 50% invested in AIM stocks, and was overweight software and oils, underweight retail and financials.

GGO's capital structure enables it to issue shares when the manager and the Board believe it would be in the best interests of current and potential investors. In February, the Company raised c. £30m through a ‘C’ share issue. Since the end of February to 30th June 2007, the NAV per Ordinary share increased 8.0% compared with a fall of 0.6% in the benchmark.

As a result of the manager's view on the increasing volatility in the market, the Company purchased further PUT options which now cover approximately 98% of the portfolio, most of which expire in September 2008. We believe the diverse number of holdings (circa 250) together with the PUT options should mitigate market risk.

Gervais remains positive about microcaps, even in these unsettled markets and believes that there are many undervalued companies which should offer short to medium term growth. It is encouraging to note that the positive trends have continued since the end of June.